NRIs apprehensive to invest in India
A study by Assocham last year on the real estate scene in India indicated that the large Malayali and Punjabi NRIs are buying the houses of their liking. The study was based on the fact that Malyalis and Punjabis have migrated in hordes over the years. Some of them are also buying commercial space, it claimed. The study also said that NRIs from other states are also purchasing houses in either their home towns or other parts of the country. It seemed the realty market in general and super luxury segment in particular will get a new boost with this new purchase parity in the market.
However, the flurry of activity that the realty market witnessed in 2009 could not be sustained over a period of time, so it seems. Another study of Eminent scholar Dr. Chandrasekhar Tiwari of Delhi University, who has been studying Indian Diaspora from various angles, seems to be more accurate today that suggests that perhaps only those NRIs are buying properties in India who have migrated to other countries during the last 25 yeas or so. They are still very much close to their roots. Dr Tiwari was candid in his study that only the first generation NRIs are coming back to India.
Dr. Devender Gupta,CMD of realty advisory Century 21 India, says that that more often than not NRIs buy flats in the range of Rs 60 lakhs to Rs 80 lakhs. They buy properties for purely investment purpose. There is hardly any emotional factor that is involved in. As and when they get good appreciation on their properties, they dispose it off. The NRI bubble, unfortunately, could not be sustained by the realty market.